The interest rate that the Federal Reserve banks charge financial institutions for short-term loans is known as the _____ rate.

Name: The interest rate that the Federal Reserve banks charge financial institutions for short-term loans is known as the _____ rate.
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The discount rate is the interest rate set by the Federal Reserve for lending to other banks. This rate is used for short-term loans, typically overnight, to meet reserve requirements or address short-term liquidity needs.

The Interest Rate That the Federal Reserve Banks Charge Financial